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STATE OF COLORADO <br />DIVISION OF RECLAMATION, MINING AND SAFETY <br />Department of Natural Resources <br />1313 Sherman St., Room 215 <br />Denver, Colorado 80203 <br />Phone: (303) 866 -3567 <br />FAX: (303) 832 -8106 <br />June 24, 2013 <br />John M. Clement <br />Executive VP & General Council <br />Ouray 79 Mining, LLC <br />P.O. Box 1917 <br />Forney, TX 75126 <br />RE: Deficiency Items for an NOI, Wanakah Mine, NOI File No. P- 2013 -010 <br />Dear Mr. Clement: <br />COLORADO <br />D IV IS I ON Of <br />RECLAMATION <br />MINING <br />SAFETY <br />John W Hickenlooper <br />Governor <br />Mike King <br />Executive Director <br />Loretta E Piheda <br />Director <br />On June 17, 2013, the Division of Reclamation, Mining and Safety (Division) received the Notice of <br />Intent (NOI) for the Wanakah Mine, P- 2013 -010. The non - confidential Form 2 was posted on the <br />Division's web site on June 19, 2013. Any public comment on the Wanakah Mine NOI must be <br />received by the Division within 10 working days after the posting date, by July 3, 2013. <br />Pursuant to Rule 5.13(c), the Division has commenced its review of the NOI and has identified the <br />following deficiency items which must be addressed to the Division's satisfaction within 60 days, by <br />August 23, 2013. If these deficiency items are not fully addressed by August 23, 2013, the Division <br />may terminate the NOI file. <br />1. Under the NOI the Prospector proposes to complete five surface drill holes, rehabilitate three <br />historic portals as necessary to conduct underground core drilling and collection of rock chip <br />samples, safeguard the three portals from unauthorized entry, and remove from site <br />approximately 101 tons of drill core and rock chip samples. Clearly, such activities will result <br />in affected lands. Yet, on page 5 of the application, paragraph G, the Prospector claims zero <br />acres affected lands. Pursuant to Rule 5.1.2(d)(iv), please correct the typographic error and <br />ensure to account for all surface areas to be disturbed by the proposed activities regardless of <br />the fact all surface areas have been previously disturbed by historic mining activities. If drill <br />core or rock chip samples will be stored on surface, either temporarily or permanently, please <br />identify those locations as affected lands as well and describe and illustrate such areas within <br />the NOI materials. <br />Pursuant to Rule 5.1.2(g), reclamation is required for all lands to be affected by the <br />prospecting activities regardless of the fact such lands were previously disturbed by historic <br />activities. If the Prospector affects historic disturbance the Prospector may incur reclamation <br />liability for the entire portion of the historic disturbance affected by the Prospector. As noted <br />in the Division's inspection report signed June 21, 2013, there is an abundance of waste rock <br />Office of Office of <br />Mined Land Reclamation Denver • Grand Junction • Durango Active and Inactive Mines <br />